“The federal government’s decision to slash residential aged care funding with no proper industry consultation is nothing short of reckless, and shows a complete disregard for the impact the decision will have on providers, particularly those in regional and remote areas,” Mr Kobelke said.

The ACSWA Board is now preparing for a crisis meeting of aged care providers early next month to review the federal government’s decision, formulating a strategy to deal with the emergency.

According to figures revealed by ACSWA, in many cases aged care providers would be faced with funding cuts of more than $22,000 per resident each year, particularly for elderly people receiving high care services and those living with dementia.

“The aged care sector is not attempting to grandstand; we simply need this decision reversed.